What are documents in accounting?

In accounting, documents are all records that serve as proof of accounting transactions and form the basis for recording business transactions in the financial books. They are important to ensure the transparency and traceability of the accounting and to meet legal requirements. Documents in accounting can take various forms:

1. Invoices

• Incoming invoices: Invoices from suppliers or service providers that serve as proof of purchases or services.
• Outgoing invoices: Invoices that the company sends to customers to document income.

2. Receipts and vouchers

• Vouchers for cash expenditures or payments, e.g. receipts for purchases or payments made without an invoice.
• Cash documents: Confirmations of payments or receipts from the cash office.

3. Bank documents

• Account statements: Documents showing the movements on a company’s bank accounts (incoming and outgoing payments).
• Transfer vouchers: Confirmations of transfers made.

4. Contracts

• Contracts with suppliers, customers or business partners that provide the legal basis for business relationships and transactions.

5. Wage and salary statements

• Statements for employee salaries that contain all relevant information on wages, taxes, social security contributions, etc.

6. Posting documents

• Internally generated documents that document the business transaction when no external invoices are available, e.g. for depreciation or internal billing.

7. Tax assessments and tax returns

• Documents related to the taxation of the company, such as tax assessments, VAT returns or income tax assessments.

8. Warehouse and inventory documents

• Documents for stock-taking and evaluating the inventory, which are necessary for drawing up the balance sheet, for example.

The importance of documents in accounting:

• Legal requirements: In many countries, companies are legally obliged to keep all relevant documents for a certain period of time (e.g. 10 years in Germany).
• Traceability and transparency: Documents serve to verify the flow of money and goods and must be traceable and correct at all times.
• Inspection and control: They serve as a basis for bookkeeping, internal audits and external inspections (e.g. by tax authorities).

Overall, documents are crucial in accounting to ensure the accuracy and correctness of financial reporting.